OE-FYBCOM-COMM GEOG -CLASS TEST STUDY MATERIAL -SEPTEMBER 2023.pdf

UNIT NO - 1INTRODUCTION TO COMMERCIAL GEOGRAPHY 1.Meaning and Definition of Commercial Geography-Nature , Scope and Development of Commercial Geography 2.Importance of Applied Commercial Geography 3.Geographical and socio cultural factors affecting development of Commerce of...

UNIT NO - 1INTRODUCTION TO COMMERCIAL GEOGRAPHY 1.Meaning and Definition of Commercial Geography-Nature , Scope and Development of Commercial Geography 2.Importance of Applied Commercial Geography 3.Geographical and socio cultural factors affecting development of Commerce of a place INTRODUCTION- 1.1. Economic geography and Commercial Geography- The word Geography is a combination of two Greek words “geo” means the earth and “graphy” means description. So, geography means “description of the earth”. The Commercial geography is the combination of two Greek Words Geo means the earth and Grapy means the description. In this unit introduced about the concept of commercial geography. Commercial geography is the relation between the Geographic features and the commercial activities. Main branches of Geography: i. Physical Geography. ii. Mathematical Geography. iii. Practical Geography. iv. Economic and Commercial Geography. v. Human Geography. vi. Environmental Geography vii. Transport geography viii. Urban Geography Economic Geography: Economic geography is one of the major branches of Geography which includes the study of the economic activities of man in relation to the environment. It shows how the economic activities of man, so far as they rotate to production, distribution and exchange of commodities are influenced by his physical environment. Commercial Geography: Commercial geography has been defined as the subject which helps the traders to learn the places and conditions of production of production of commodities of trade, where there is good market for selling these commodities and how to arrange for the convenient transport of these commodities. Economic Geography is the study of the way man adjusts his economic activities to the physical environment ( such as Clime and topography ). Economic and commercial geography is that branch of human geography in which we study the Geographical description of production and distribution of various products required by mankind. Therefore, we say that Economic and Commercial Geography is the Geography of production and distribution. While producing any product various factors contribute their effects on production. These factors are related to the surroundings of a place of production or distribution. Hence, one may say that Economic Geography deals with the factors affecting the production of articles required for food, shelter and clothing. Thus, the purpose of Economic and Commercial Geography is to study the relationship between the factors affecting production, and also factors affecting distribution and their relation with mankind. As the natural resources are unevenly distributed and therefore, prosperity, development, demands and supply are also variable, at different places, and the factors influencing the type or pattern of production and distribution are dissimilar at different places depending upon the progress of mankind. SCOPE OF ECONOMIC AND COMMERCIAL GEOGRAPHY- As the purpose and scope of Economic and Commercial Geography is to study the factors responsible for production and distribution for production and distribution of various commodities, to study the trend of consumption, together with the problems involved. Thus we can say that Economics and Commercial Geography is mainly concerned with the study of agriculture, minerals, industrial resources and also means of transportation and trade centers of the world. For the study of Economic and Commercial Geography it is essential to study the causes to produce various agricultural products. It is also identified which factors are responsible for the growth of agricultural products and also the factors that are responsible for the commerce and trade of the agricultural products. Study of Minerals Resources -The type and nature of mineral resources are available in the world for study. Minerals are also an important factor of trade and commerce, because every country in the world is not self-sufficient in mineral resources, in Economics and Commercial geography, we study about the production and distribution of different minerals found in the world. Study of Industrial Resources- Agricultural and mineral resources are responsible for the growth and development of industrial sector because agricultural and minerals are used as an input in industries. So, industrial progress cannot be studied without the study of other factors. Our agricultural produce plays an important role in the industrial sector. A country with limited agricultural and mineral resources cannot be progressed in the industrial sector. Study of Means of Transportation -Transportation plays an important role for the progress of agricultural, minerals and industrial resources. An industrial and agricultural produce cannot be brought if means of transportation are not efficient. So, without the study of means of transportation study of other factors is not possible. Study of Traders- Trade centers also play an important role for the development of trade and commerce of certain areas. All trade activities are carried through these centers so, without the studies of trade centers commerce and trade of the other areas cannot be promoted. 1.2 IMPORTANCE OF ECONOMIC AND COMMERCIAL GEOGRAPHY: i. Advantages for students: With the study of economic and commercial geography students can become successful businessmen, industrialists, traders, Landlords and bankers of the future. ii. Advantages for food production : With the help of study of economic and commercial geography. Farmers can know about the various kinds of seeds, methods, crops and products. iii. Advantages for Industrialists: Economic and commercial geography is also important for industrialists with the help of this. An industrialist can hire cheap labour, raw material for his industry. He is also in search of new markets for this product. iv. Advantages for Traders: With the help of economic and commercial geography, a trader is in this position to come to know about the various sources of world. Due to this, a trader come to know from where he can achieve his goal. v. Advantages for Bankers: Capitalists and bankers invest capital in various countries, with the study of economic and commercial geography, bankers are in this position to come to know the sources of different countries. vi. Advantages for Rulers: Rulers can make effective planning in the light of developed countries and make arrangement to utilize the available agricultural, industrial and mineral sources after get studying of economic and commercial geography. vii. Solution of Poverty and Unemployment: With the help of economic and commercial geography we are in this position to study the sources and distribution of population. viii. Import and Export Trade: Study of economic and commercial geography is most important for import and export trade. 1.3.GEOGRAPHICAL AND SOCIO CULTURAL FACTORS AFFECTING DEVELOPMENT OF COMMERCE OF A PLACE Various features that constitute the environment are called components of environment. All the organisms and human beings derive the things that they need from their surrounding environment. Some of these components exert a great impact on economic and commercial activities and progress achieved by human communities. On the basis of origin these components are divided in to two categories. A) Natural or Physical factors of the environment- Natural Environment can be broadly sub divided in to Various components which affect commerce - 1. Abiotic or Non-living components –Few of the major factors are - Location of the place Types of Climate Topography Or relief features of the place Types of soils Availability of minerals Availability of fuels Availability & Type of coastlines size and shape of the place etc. 2. Biotic or Living components - Plant life Animal life Human resources of the place B) Human / Anthropogenic factors of the environment- 1. Social and Cultural components - Demographic factors- Population size and population distribution Culture & Traditions and religion Taste, preference of consumers etc 2. Economic components - Level of Investments Infrastructure development Amount of Mechanisation Development of technology Economic policies Size of the market etc 3. Political components - Nature of Government Stability of the Government Policies adopted and decision making process Priorities of the Government Political considerations Wars and terrorism Trading Blocks A) FACTORS OF NATURAL /PHYSICAL ENVIRONMENT- 1. Abiotic or Non-living- All the non-living factors or elements of Natural surrounding of man a) Location- Location of a place is its exact position in the given space.  Locations are expressed in two ways- Absolute Locations - with reference to the mathematical measurements of latitudes and longitudes Relative locations - with reference to nearby natural and man made landmarks and features Locations play a major role in development of all human activities, by determining physical character of any place, also by providing endowments and potentials to grow commerce & trade.It largely determines the climate of the place. They also helps to understanding of the accessibility conditions of any place. A) ABSOLUTE LOCATION- It is expressed in mathematical terms of Latitude and Longitude and is precise and fixed. This type of expression of location gives exact idea of country’s climatic pattern and its response to the development. The network of Latitudes and Longitudes is called as Grid or Graticule. Latitudes & Longitudes- Graticule and Division of the earth into spheres according to the location Location of different continents & oceans Absolute Location of India is The country is situated north of the equator between 8°4' north to 37°6' north latitude and 68°7' east to 97°25' east longitude. Absolute location determines the climatic characteristics of any place. RELATIVE LOCATION-Location of place or region described with reference to geographical features, water bodies, landmasses, transport routes etc is called as relative location. For example, India’s Relative location is described as follow- India- On the south, India projects into and is bounded by the Indian Ocean in particular, by the Arabian sea on the west, the Lakshadweep Sea to the southwest, the Bay of Bengal on the east, and the Indian Ocean proper to the south. The northern frontiers of India are defined largely by the Himalayan mountain ranges, where the country borders China, Bhutan, and Nepal. Its western border with Pakistan lies in the Karakoram range, Punjab Plains ,the Thar desert, and the Rann of Kutch salt marshes. In the far northeast, the Chin Hills and Kachin Hills ,deeply forested mountainous regions, separate India from Burma. On the east, its borders with Bangladesh is largely defined by the Khasi Hills and Mizo Hills ,and the watershed region of the Indo- Gangetic Plain. Relative location with reference or relation to Physical features of India – Following are few important types of Relative location- mainly are described in terms of - 1. Land and water configuration 2. Transportation routes and points of convergences 1. Land and water configuration- MARITIME VS CONTINENTAL LOCATIONS- The location having vicinity to ocean are called as marine locations , while the locations at the interior parts of the continents are the continental locations Insular or Island Locations- A location of a country or region when surrounded by water on all sides. It may be a group of islands e.g. Japan, U.K., Australia Peninsular locations- A location of a country or region when surrounded by water on three sides e.g. India, Italy etc. Such locations are beneficial in the growth of trade and progress Littoral Locations- A location that has a substantial portion of land adjacent to the sea. This location provides such regions or countries a good access to oceans and ocean routes. Thus foreign trade is possible using navigation by sea e.g. China, France, Spain, USA etc. Continental Locations- Some countries or regions are surrounded by land on all sides. They are located away from sea in the interior of the continent. Such countries are also called as Landlocked locations and they are considered as unfavourable locations for expanding or carrying out trade and commerce. Also they suffer with extreme climatic conditions. E.g. Afghanistan, Nepal, Bolivia etc. Isthmian locations- A location of region or country on an Isthmus. Such country enjoys strategic location which influences the geopolitics and trade of the world e.g. Suez and Panama. Isthmian locations divide two large water bodies and connect two big land masses at the same time. E.g. Panama country located in Central America which divides the Atlantic Ocean from the Pacific Ocean and at the same time connects two large land masses of North America to South America. Focal or Nodal Location- These locations are man made locations and well connected with nearby areas with several routes and means of transportation and communication. They are connected to the local, regional , National and international areas with railways, road networks, airways and waterways at the same time eg. E.g. Mumbai, New Delhi, Ahmedabad , Nagpur, London, Paris , Amsterdam etc. They provide maximum possible accessibility for the transportation of raw materials, industrial goods, food resources , fuels and developing services of various types. Portal Locations- or Break of Bulk Point locations A port is a point of contact between a land and a major water body like sea or a river, and is a maritime facility which comprise of activity of ships on the dock to load and discharge passengers and cargo. Although usually ports are situated on a sea coast or estuary, some ports, such as Hamburg and Manchester are many miles inland, with access to the sea via rivers or canals.. Because of their roles as a port of entry for immigrants many port cities such as London, New York, Shanghai, Los Angeles, Singapore and Vancouver have experienced dramatic multi-ethnic and multicultural changes and are developed cities. Today, by far the greatest growth in port development is in Asia, the continent with some of the world’s largest and busiest ports like Singapore , Shanghai, Ningbo - Zhoushan. As of 2020, the busiest passenger port in the world is the Port of Helsinki in Finland. Ports can also be very small and only serve local fishing or tourism. Portal locations are the best locations for any country to initiative and grow their foreign trade as, these are the locations which give maximum advantage in the form of great access to the ocean trade routes and the inland transport systems such as roadways and th railways at the same time. There is a break of mode of transportation that occurs at these points, therefore also called as Break of Bulk Point locations. Ports usually have specialized functions: some tend to cater mainly for passenger traffic and cruise ships , while some specialize in container traffic or general cargo; and some ports play an important military role for their nation's navy. A port - A container carrying vessel Commercial Shipping routes of the world Insular or Island locations Peninsular location- location- of USA and Canada – A larger part of the country is surrounded by ocean surface Isthmian location- Suez canal Isthmian location-Greek Isthmus Panama in Central America- Impact of Panama Canal and Suez Canal on International Trade Relative location with ref to Transport accessibility— Focal or Nodal location- e.g Amsterdam , the capital of Netherlands in Europe Continental location- Afghanistan in Asia and Switzerland in Europe B) Climate- Climate is the sum total of weather conditions ( mainly Temperature and Humidity). Climate of a place plays a major role in physical and mental well being of an individual. It affects agriculture and other commercial activities of the place. It refers to general conditions of the atmosphere, therefore its condition directly affects human health and efficiency to work. It influences human life right from man’s physical and mental ability up to the choice of his activities. For e.g. The people in the cool temperate climatic areas are more energetic and are capable to undertake hard work and can work for the longer duration of hours. On the contrary people living in the hot climatic regions don’t have that ability. Physical capacities to do the work, type of soil prevailing in the region , vegetation type , crops to be cultivated are decided by the climate. It affects the plant life in different ways and the whole agricultural science is directly dependent on this component. The type of forest resources growing in different climatic conditions are different and have differential commercial value. The distribution of vegetation cover over the globe depends mostly on rainfall and temperature, accordingly different vegetation belts and biodiversity regions are developed on earth surface. Also the animals found in any region or a country is not same, as animal types & their growth is influenced by the climate of the place. Soil formation occurs in direct response to the type and nature of climatic factors., which determines the food productivity of different areas and always affects surplus and deficit conditions in the supply of food. Climate has a direct impact on types of houses, clothing, food production and food consumption habits found world over. Development of transport and communication at any place is also largely determined by the nature of climate. Temperature, humidity, winds, air pressure, rainfall etc all the basic elements of climate. The latitudinal location of the place and height from or above the sea level, are the two factors which mainly determine type of climate. Climate has a direct impact on biodiversity - C) Topography or relief features Topography/ Relief features/ Terrain of region refers to the relief feature of the place. These features always affect accessibility of any places. It affects the development of economic activities in any given area. Rugged terrain poses hurdles in development with regards to transport systems and the thin soil covers restricts variety of agricultural productions. The major relief features are- 1. Mountains- Alps in Europe , Himalayas in Asia, Rockies in N. America, Andes in S. America etc 2. Plateaus- The Deccan Plateau of central & South India, North Indian Plateau , Tibetan Plateau 3. Plains- a) River flood plains such as Ganga river plains of northern India b) Coastal plains such as the plain low lying areas of of eastern and western Indian coastlines Landforms under the sea- Landforms under the sea- These landforms affect the human activities of marine resource exploitation , development of commercial fisheries , development of navigation routes and tourism development. The countries and locations which have wide continental shelves ( gentle slopes) are blessed with occurrence of marine life and are experts in export and consumption of fisheries. E.g USA , China etc. Mountains- world over mountainous areas are found to be underdeveloped. The mountainous terrain does not support development of agriculture, transportation and industry easily Mountains are rich in few resources like rivers, minerals, forests, natural beauty etc. but due to the difficulties posed by steep slopes, heavy rainfall or snow fall, thin and infertile soil cover, human development is limited. E.g. Himalayan ranges, Rockies mountains etc. Plateaus- are the table lands. They support primary activities like animal grazing or agriculture e.g. Tibetan plateau. Some Plateaus are very rich in mineral wealth e.g. Chhota Nagpur plateau of North India and some have very fertile soil which have initiated commercial plantation agriculture like Deccan plateau of central and southern parts of India, which has lead to a good development of mining, industries, transportation and trade in mineral ad agricultural products. Plains are the low lying areas near the huge rivers or sea coastlines which are the most favoured locations of the growth of al types of human occupations. Plains occupy 55% of the total land surface of the world , but supports more than 90% of human population of the world. e.g. Ganga and Satlaj Plains of North India, S.China Plains etc D) Nature of Coastline-Water transport is the cheapest and most convenient mode of transport mainly used for world trade.An Indented or broken Coastline is ideal location for development of harbours in the form of estuaries and bays and therefore development of ports is possible. e.g. Norway, Great Britain, Japan etc The countries which have smooth coastlines have limited opportunity of having a natural harbour like African coastlines, western coastline of India etc. Broken or Indented Coastlines of Norway and Japan which offer suitable harbour and port locations- Mumbai port- in Maharashtra Thane Creek provides safe and secured location for the ports of Mumbai and JNPT e) Shape and size of a country/ region- Size attribute of any region or country is one of the important ophysical factor that determines development of activities. Large size countries like Russia, USA, Canada India, china etc enjoy variety of climates, soil types and many other resources. They become self- sufficient by producing variety of goods. Such countries have a very well developed Internal ( domestic) trade and wider opportunities to grow their international trade.  Small sized nations like Japan, UK, Caribbean Islands, Sri Lanka etc have to import various raw materials in the form of food , energy resources etc. Such countries have no or very limited development of domestic trade. Shape of the territory attribute- Shape of a country affects its capabilities to focus on economic growth. Following are few types of shapes- Fragmented shape-The countries having fragmented shape have scattered territory and are poorly connected. e.g Indonesia, Malaysia , Philippines etc. Elongated shape- Some countries have this type of location , and the countries having this shape do not have a favourable environment to develop commerce and trade as they face extreme types of Geographical conditions. Also they require to focus upon their internal and external safety conditions more than others. e.g Chile in South America. The regions/ countries processing a compact shape tend to have all round development due to ease in having accessibility to their entire territory. e.g USA, France etc Diagrams/ maps - Scattered shape- e.g Philippines, Indonesia etc Elongated Shape of Chile Compact shape of France f) Minerals and fuels- Minerals and fuels are the most unevenly distributed resources on the earth surface. Availability of minerals and fuels influences development of industries and trade. Some countries are endowed with large amount of different mineral stocks and energy resources while some others are completely without these resources. e.g. 90% of the world’s crude oil reserves are found in Middle East Asian ( Arabian ) countries. Even the desertic countries attract people from across the world to migrate due to the prosperity of these countries. USA, Russia , china, India and Brazil possesses great stocks of minerals such as iron ore and coal, while African countries lack such deposits. A variety of geographical factors make distribution of natural resources highly uneven. Large deposits of petroleum are concentrated in the Middle East , vast deposits of coal in USA, UK, France, Germany and China. The international trade flows in energy resources and minerals are greatly guided by such a distribution g) Soils- The top layer of the earth is called as soil. It consists of both organic and inorganic matter. Soil is formed due to weathering of rocks due to climatic and organic activities. Soil plays a very important role especially in the activity of food production and horticulture. The colour and texture of the soil varies from area to area because of different parent rocks, amount of rainfall and sunshine, amount of organic matter present in the soil etc. e.g. Black cotton soil or the regur soil found in the western part of Deccan plateau is derived from the underlying parent rock, called as basalt, and the other parts of the same Deccan plateau is covered with red soil derived from granite gneissic rocks. Soils show regional variation as a result of the prevailing relief features. The most fertile alluvial soils are found near the low lying areas of the river banks and the river beds. Also the mineral rich volcanic soils help to perform market oriented plantation agriculture Each soil type influences the crop cultivation and food production. E.g black cotton soils are suitable for cotton and sugarcane cultivation., alluvial soil for wheat, etc. 2) Biotic Physical or Natural components of the environment - a) Natural vegetation- It refers to the green cover present on the earth surface. It helps man to develop many types of activities. forests provide timber, wood, fruits, bark,leaves, herbs etc for human use. Industries like paper and pulp industry, construction industry, match box industry, rayon industry, sports goods industry etc depend largely on forests for raw materials. Forests are habitat for animals. Also they are producers of oxygen and keep CO2 levels low. They help to keep moist and cool climate and avoid aridity. There are many types of forests based on variety of trees and their products. Forest type in a region is determined by its climatic character.  E.g. Equatorial evergreen forests or Selvas , Tropical Monsoon forests, deciduous forests, Temperate soft wood forests, Coniferous or Taiga forests, Xerophytic or desert forests, Savana grassland etc b) Animal life- Animals play a significant role in keeping the balance of our environment and also for conducting different human occupations. Animal life is an asset to man kind, as several animal products like dairy, meat, leather , wool, horns, hides etc are produced of them Animals are used for transport purpose. They are also used in agricultural occupation in less developed countries. Animal rearing is practiced on commercial scale in all parts of the worldin the form of commercial cattle rearing, sheep farming, dairy business, poultry farming, pig farming , aquaculture etc This is a highly specializes profit oriented industry. Types of animals surviving and found in a particular area is in response to its relief conditions and climatic character. B) Human / Anthropogenic factors of the environment- Human beings reach has increased tremendously with the development of technology. Man has created a vase and varied cultural landscape which differs from country to country. Whatever is produced by man and evolved in the process of civilization form components of man- made or human environment. These components may be visible or invisible , they occur and influence directly or indirectly. Following are types of human ( man-made) Anthropogenic environmental factors which affect our activities- 1.Social and Cultural factors such as- By cultural components we mean all those aspects which are the creations of human beings as a whole. Demographic factors- Population size and population distribution – affects demand for resources , size of markets Culture & Traditions of any place- encourage or discourage resource production and consumption Taste, preference of consumers etc determine demand Socio- cultural environment contains typical type of human traits like religion, ethnic character , traditions , and related practices of resource consumption. Economic and commercial utilization of different resources is also related to these factors. E.g. Asian countries have limited development of marine and animal resources due to vegetarianism propagated by the local religions. Population size containing variety of or homogenous cultural groups can also guide the demand- supply patterns of different resources. 2. Economic factors such as- Investments in resource development Infrastructure development- transport and communication & telecommunication Mechanisation- in food production, storage , industrial activities Development of technology – Irrigation, storage, transport, refining, biotechnology, IT Size of the market – income level  The economic env. Develops as a result of economic activities developed in the country viz. farming, mining, grazing, fishing, manufacturing, transport and trade. Each of these activities generate their own environment through resource utilization. Res. Utilization depends on two factor- (a) availability of local resources and (b) availability of technology to exploit resources. mechanization allows mass production. Technological innovations enhance quality of the production. 3. Political- Nature of government- Various countries follow different types or nature of political systems. For example - democratic, dictatorial, communist, socialist, centrally planned etc. Accordingly their priorities of development, policies and development strategies differ from each other. Stability of the government is another major factor to consider to have a continuous development of growth of resources of the nation. Nature of political parties , their political alliances, existence of terrorism activities Policies, decision making & Priorities of the government Political considerations in trade- TRADE BLOCS- Countries having similar political ideology form trade blocs.Trading blocs are usually groups of countries in specific regions that manage and promote trade activities. They lead to trade more liberalization and trade creation between the member countries, in comparison to the non member countries. The World trade Organization (WTO) permits the existence of trading blocks that they result in lower protection against outside countries that exists before the creation of the trading bloc. The most significant trading blocs acting very crucial in world commerce are- OPEC- Organizations of petroleum exporting Countries EU- European Union – a customs union, a single market and now with a single currency NAFTA- North American Free Trade Agreement- between the USA, Canada and Mexico Mercosur – a customs union between Brazil, Argentina, Uruguay, paraguay and Venezuela ASEAN- Association of South East Asian nations SAFTA- South Asian Free Trade Area Pacific Alliance- a regional trade agreement between Chile, Colombia, Mexico and Peru SAARC- south Asian Association for Regional Cooperation A trading bloc is a type of intergovernmental agreement , often part of a regional organization where barriers to trade ( tariffs and others ) are reduced or eliminated among the participating states. Trade blocs can be stand-alone agreements between several states (such as the North American Free Trade Agreement or part of a Regional Organization such as European Union. Depending on the level of economic integration, trade blocs can be classified as preferential trading areas, free - trade areas, customs unions, common markets, and economic and monetary unions. Members of successful trade blocs usually share four common traits: similar levels of per capita GNP, geographic proximity, similar or compatible trading regimes, and political commitment to regional organization. Trade blocs encourage regional free trade as well. The global free trade is in the interest of every country, as the regional trade blocs would create more opportunities to turn local resources into goods and services that are both currently in demand and will be in demand in the future by consumers. Advantages enjoyed by the member nations- Competition -Trade blocs force the manufacturers in participating countries to compete with each other. Increased competition creates pressures for greater efficiency within firms, which results in lower prices for consumers. Home producers have to work with greater efficiency to ensure survival of their goods against the low price imported goods since tariffs are removed. International producers tend to increase their production of goods as they realize that the low price goods that they produce have a better chance of competing with home-produced goods in the market. Economies of scale- The larger markets created by trade blocs permit companies to take advantage of economies of scale. Since the average cost of each good produced tends to fall as production increases, this results in lower prices for consumers. Improved Market efficiencies- Increased competition and the removal of tariffs, which may act as a price floor, drive down prices and allow for increased consumption. This reduces loss and hence improves market efficiency. Increases foreign direct investments- An increase in foreign direct investment may result from the creation of trade blocs. This can benefit the economies of participating nations by creating jobs in new or expanded businesses. Trade Effects: Trade blocs eliminate tariffs, which drives down the cost of imports. As a result, consumers can save money by buying imported goods when cheaper than locally produced ones—they can then spend those savings on other goods. Reducing the cost of imports also reduces the cost of locally produced goods that use imported parts or components. Disadvantages – Concessions- No country wants to let foreign firms gain domestics market share at the expense of local companies without getting something in return. Any country that wants to join a trading bloc must be prepared to make concessions. For example, in trading blocs that involve developed and developing countries, such as Bilateral Agreements between the U.S. or the EU and relatively poor Asian, Latin American or African countries, the latter may have to allow Multinational Corporations to enter their home markets, hurting the business of some local firms. Interdependence- Because trading blocs increase trade among participating countries, those countries become increasingly dependent on each other. A disruption of trade within a trading bloc as a result of a natural disaster, conflict or revolution may have severe consequences for the economies of all participating countries. Regionalism vs. Multinationalism: Trading blocs inherently favor their participating countries. Trade Agreements of India – A case study India actively engages in regional and bilateral trade negotiations to diversify and expand its export markets while ensuring access to the raw materials, intermediates, and capital goods needed to stimulate value-added domestic manufacturing. Presently, India shares preferential market access and economic cooperation through trade agreements with over 50 countries.